Assignment 2
Literature Review & Proposed Conceptual
Model on
Perceived Value of Thai Airways
Business Research Methodology
MGT 3940
Submitted to
Dr. Sasithorn Phonkaew
By
Proposed by
Group 4 Section 415
1. Ms. Thippawan Pamornsuphakul 5010748
2. Mr. Krongpol Busabok 5011306
3. Ms. Jirawan Jiraveatthaworn 5013907
4. Ms. Janenij Wittayasai 5114450
5. Mr. Sovuthy Oum 5115360
6. Mr. Phamorn Luangamorn 5137599
Semester 1/2010
Assumption University
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Introduction
In this report, we intend to introduce the conceptual model
of customers perceived value for Thai Airways. Also, this report
included 3 research papers that we borrow 4 important factors in
their conceptual model that study related to customers perceived
value.
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Literature Review
First literature study:
“A great place to live, work and play. Conceptualising place satisfaction in
the case of a city’s residents.” (Insch and Florek, 2008)
Summary of this Paper:
This paper's objective is to explain about the great place that the
people live, work and play is not concerned about money, but it
concerned about their satisfaction. The researchers hypothesized that if
the people who live inside the city have positive attitude with their life, it
will be great for the city in order to crate strongly good image to tourists
and visitors. In other way, if the people have negative attitude with their
life, it will be harmful to their city. However, an assumption which state
that the people live in communities because of satisfying their preferences
is not always true. The people also want to find a risk or it is difficult to
move to another place.
This paper which was motivated by the real need made a reliable
evaluation of quality of life and wellbeing
Variables studied of this Paper
1. Customer expectations: Customer expectations are measures the
customer’s anticipation of the quality of a company’s product or
services.
2. Perceived quality: Perceived quality is the evaluation of the
customer’s evaluation via recent consumption experience of the
quality of a company’s products or services.
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Conceptual Model of This paper
In this case we will borrow “Customer Satisfaction” from this paper.
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Second literature study:
“Conceptualizing tourist satisfaction at the destination level.”
(Tanja Dmitrovic, Ljubica Knezevic Cvelbar, Tomaz Kolar, Maja Makovec Brencic,
Irena Ograjensek and Vesna Zabkar, 2009)
Summary of this Paper
The purpose of this study is to examine the conceptual framework
for measuring tourist satisfaction and to provide a destination
management organization with a comprehensive tool for understanding
the key factors of destination competitiveness and improve the quality.
These study want to develop a standard model of the antecedent and
consequence of customer satisfaction and thereby provide a conceptual
basis for develop a universal, parsimonious, short and easy applicable
measurement instrument.
Variables studied of this Paper
1. Quality
Quality is an antecedent to customer satisfaction. A number of studies
in tourism research confirm a positive relationship between quality
and satisfaction and between perceived value and satisfaction. Several
studies also found that that the relationship between perceived quality
and customer satisfaction is partly mediated by perceived value.
2. Costs and Risks
Costs and risks (sacrifices) are negatively related to perceived value
and adversely affect customer satisfaction. The sacrifice construct
includes the element of price, non-price components (e.g. the time
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and effort invested in pre-purchase activities, the actual purchase
process, etc.) as well as the risks associated with the purchase (social
desirability, security, etc.).
3. Image
Image is a direct antecedent of the evaluation of the stay and future
behavior, where perceived quality acts as a mediator between
destination image and satisfaction.
Conceptual Model of this Paper
We will borrow “Quality and Image” from this paper and we will reverse
to “Product Quality and Airline Image”.
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Third literature study:
“Modeling the relationship between perceived value, satisfaction and
repurchase intentions in a business-to-business, service context: An
empirical examination.” (Patterson and Spreng, 1997)
Summary of this Paper:
This paper's objective is to define the relationship among perceived
value, satisfaction and repurchase intentions for professional business
service base on empirical examination. The researchers hypothesized that
perceived value and satisfaction are important factors of repurchase
intentions. Moreover, they also investigate to delineate the number and
nature of service performance dimensions that influence on both
perceived value and satisfaction.
After finishing study the relationship among value, satisfaction and
repurchase behavior in a business-to-business services context, they found
out that perceived value is completely mediated through satisfaction in
influencing repurchase intentions.
Variables studied in this paper:
[Link]:
Produced results which are able to implement. Produced results
which enable to increase the organization's effectiveness.
[Link]:
The organization used the most up to date methodologies on the
assignment, so it is reflecting the innovative ideas and solution, and
creativity exhibited.
[Link]: Represent the level of service provided including attributes such
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as reliability in meeting deadlines, responsiveness, dependable, and
general professionalism displayed.
[Link]:
Established a good rapport and relationship development between
client, service provider.
[Link]:
Depicting the expectation of many clients that the consultant has
access to a global network of contacts and sources of information.
[Link] Identification:
Clients had an expectation that the consultants should take time
to familiarize themselves with the firms' goals and thoroughly understand
the nature of the problem before commencing any work.
Conceptual Model of this paper
In this case we will apply “Service” from this paper to use as our model
by converting from “Service” to “Service Quality of Staff”.
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Proposed Conceptual Model
p
Product Quality
- Airport Lounges
- Comfort Amenities
- Innovative Aircraft
- In-flight entertainment
- Electronic Ticketing
Customers Expectation
- Safety
- Friendly
-Comfortable
-Timely
-Precious
Perceived Value of Thai
Airways
Service Quality of Staff
- Hospitality
- Sincerity
- Politeness
- Professionalism
- Prestige
Airline Image
- Reputation
- Reliability
- Consistency
- Unique
- Luxury 8
Definition of Customer Perceived Value
Paper 1:
“A great place to live, work and play. Conceptualizing place satisfaction
in the case of a city's residents” (Insh and Florek, 2008)
Perceived value is a measure of quality relative to price paid or the
value for money aspect of the customer experience. So value is defined as
an assessment of the ratio of perceived quality relative to price.
Source: (O'Loughlin and Coenders, 2002)
Here, customer perceived value is measured by two factors:
Perceived quality: is the evaluation of the customer via recent
consumption experience of the quality of a company's products or
services. Basically, customers define the overall qualities such as
product or service quality itself, brand and emotional experience
that they have known to judge their perceived value.
Customer expectations: it measures the customer anticipation of
the quality of a company products or services. Customer
expectations is very important to establish the benchmark against
which customer evaluate the quality of products and services. So, to
recruit and retain valued customers, policy makers and planners
have to consider the quality of products, motives, expectations and
needs of current and prospective customers.
Source: ACSI (2008)
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Paper 2:
“Conceptualizing tourist satisfaction at the destination level”
(Tanja Dmitrovic, Ljubica Knezevic Cvelbar, Tomaz Kolar, Maja Makovec Brenc )
The conceptualization of perceived value is perhaps the most
controversial of all evaluative constructs which for m an integral part of
customer satisfaction models.
Source: Rust and Oliver (1994)
Based on the premise that measurement at the destination level in
fact captures tourist Cumulative satisfaction, we follow Parasuraman
view that quality is an antecedent to customer satisfaction. A number of
studies in tourism research confirm a positive relationship between
quality and satisfaction and between perceived value and satisfaction.
Source: Murray and Howat, 2002
Several satisfactions is partly mediated by perceived value
Source: Chen and Tsai, 2007; Johnson
Previous research results therefore support the view that perceived
value and quality are distinct constructs, both affecting tourist
satisfaction previous research results therefore support the view that
perceived value and quality are distinct constructs, both affecting tourist
satisfaction directly, and that the effect of quality on satisfaction is
partly mediated by perceived value.
P1. The quality of tourist offers at the destination level affects
tourist satisfaction.
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P2. The perceived value of a tourist destination’s offer affects
tourist satisfaction.
P3. Quality influences the perceived value of a tourist
destination’s offer.
Source: Hence
Paper 3:
“Modeling the relationship between perceived value, satisfaction and
repurchase intentions in a business-to-business, services context: an
empirical examination” (Paul G. Patterson and Richard A. Spreng)
Perceived value is of significance to marketing scholars since it may
alter the direction (satisfied/dissatisfied) and the degree or intensity of
satisfaction/dissatisfaction experienced
Source: Spreng et al., 1993
Perceived value is frequently conceptualized as involving a consumer’s
assessment of the ratio of perceived benefits and perceived costs
Source: (Liljander and Strandvik, 1992; Monroe, 1990; Zeithaml, 1988)
They hypothesize that perceived value and satisfaction are important
antecedents of repurchase intentions. In addition, most studies modeling the
impact of perceived performance on satisfaction or behavioral intentions
have done so at the aggregate construct level, despite the fact that
examining the effect of individual dimensions of performance attributes has
potentially great utility for practicing managers. Therefore, the second
objective is to delineate the number and nature of dimensions of perceived
performance. The third aim is to assess the relative impact of each service
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performance dimension on both perceived value and satisfaction. The
significance of service quality and customer satisfaction has been widely
discussed in the literature
Source: (Bloemer and deRuyter, 1995; Grnroos, 1984; 1988; Gummesson,
1993; Parasuraman et al., 1985; 1988; Patterson and Johnson, 1993)
Perceived value is a “richer measure of customers’ overall evaluation of
a service than perceived service quality”. More comprehensive
Source: Bolton and Drew (1991)
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References
Insch and Florek.(2008) “A great place to live work and play
conceptualizing place satisfaction in the case of a city’s residents” Journal
of Place Management and Development Vol.1 No.2, pp.138-149
Dmitrovic, Cvelbar, Kolar, Brencic, Ograjensek and Zabkar. (2009)
“Conceptualizing tourist satisfaction at the destination level.”
International Journal of Culture, Tourism and Hospitality Research Vol.3
No.2, pp.116-126
Patterson, Spreng. (1997) “Modeling the relationship between perceived
value, satisfaction and repurchase intentions in a business-to-business,
service context: An empirical examination.” International Journal of
Service Industry Management Vol.8 No.5, pp. 414-434
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